Digital Payment landscape In Bharat

Landscape - India has continued its dominance when it comes to the digital payment landscape. With?46% of Global Real-Time Payments done by India, it stands at the top globally. As per the data from MyGov India, India undertook 89.5 million Real Time Payment Transactions in 2022.

Market size of digital payments in India - Data from the Reserve Bank of India (RBI), the country's central bank, shows that between financial year 2020/21 (FY20–21) and FY22–23, digital transactions across various retail and wholesale payment channels grew by more than 2.5 times by volume to?113.9 billion?and are worth more than Rs2000tn ($24.14tn).

Current situation of digital payment in India - Cash remains the king, as evident in high currency in circulation, the digital payment ecosystem grew exponentially in the last few years.?In the financial year 2023, almost 114 billion digital transactions were recorded across the country.

Position of India in digital transaction - India has?topped the list for digital payments?and recorded 89.5 million transactions in 2022, Boston Consulting Group (BCG) predicts that the proportion of digital payments will grow to 65% by 2026.?

Key building blocks that have helped create a vibrant digital payments ecosystem - combined with rapidly growing smartphone penetration, cheap internet access, a regulatory push towards financial inclusion, a universal digital identification program, and fintech-led user-friendly innovative digital products.

Future of payments in India - The next wave of growth is likely to come from Tier 3-6 cities, as indicated by the fact that Tier 3-6 cities have generated about 60-70% of new mobile payment clients over the last two years. Expanding merchant acceptance, digitizing value chains, and establishing a financial services ecosystem. The adoption of embedded payments via 5G and the Internet of Things (IoT), as well as the introduction of India's sovereign Digital Rupee, are expected to give additional momentum.

Timeline –

Contributor to the rapid growth of digital payments - The main contributor to the rapid growth of digital payments is the?Unified Payments Interface (UPI), a payment system that enables instant transfer of funds between two bank accounts using a mobile device.

Digital Payment Dashboard

The future of digital payments in India looks bright with the expected growth in the number of internet users and e-commerce market size. Year on Year growth for Digital Payments in India has been significant.

?Digital payment modes –

?

Source – Multiple Journals & references.